City Developments secures $250m sustainability-linked loan

It will be used for general working capital and corporate funding.

City Developments (CDL) secured a Sustainable Development Goal (SDG) Innovation Loan from DBS amounting to $250m in the form of a three-year revolving credit facility, according to a news release.

The company will use the loan for its general working capital and corporate funding. It will also be eligible for a discounted interest rate if it achieves sustainability-related performance targets mutually agreed with DBS.

From the 17 SGDs adopted by the United Nation states to tackle poverty and climate change, the loan is set to support SDG 9: Industry, Innovation and Infrastructure, SDG 11: Sustainable Cities and Communities and SDG 13: Climate Action.

CDL is required to be the first in Singapore to adopt and apply innovations to its projects, with an authoritative expert or expert panel appointed to independently assess and endorse the innovative nature of its proposal against market norms.

In addition, CDL will also need to remain listed on at least one leading global sustainability index.

CDL secured its first green loan in April 2019, amounting to $500m. This marked the first time that green loans in Singapore were used for new property developments.